Curve DAO token has been moving lower for months. Since August the trend has stayed down. Each small recovery has failed and price has kept making lower levels. Recently CRV broke below 0.37. Many expected a sharp fall toward the next big support near 0.24. That did not happen. Instead price dropped to around 0.33 and then bounced fast.
The bounce surprised many traders. In just over four days CRV moved up by about sixteen percent and reached close to 0.38. Moves like this often create hope. Some people started thinking this could be the start of a real recovery. But when you step back the picture still looks weak.
This bounce came after a long stretch of selling. During such periods quick jumps are common. They usually happen when sellers take profit or when short term traders chase a move. This does not always mean the trend has changed. Often it is just a pause before more downside.
Looking at the bigger view the downtrend is still clear. Buying activity has not increased much over time. One strong green move does not erase months of selling. Long term indicators still point lower. The market has not shown steady demand that would suggest a full trend shift.
The area near 0.37 which was support before is now acting as resistance. Price tested this zone during the bounce and struggled. This is a normal pattern in weak markets. Old support often turns into a ceiling. Sellers tend to step in there again.
On shorter time frames price moved slightly above this zone and then slipped back below. That tells us buyers could not hold control for long. When support fails this quickly it often shows lack of strength. Bulls were not ready to defend higher levels.
Some traders believe the recent move was mainly to clear out positions. Sharp moves like this can force short sellers to exit. Once that pressure is gone price often drifts lower again. This kind of move is sometimes called a trap for late buyers.
The chance of a strong rally toward higher levels still exists but it looks less likely right now. For that to happen CRV would need steady buying and a clear break above resistance. At the moment that has not happened.
If selling pressure returns price could move back toward the recent low near 0.33. A break below that level could open the door for more downside. This matches the longer trend which has not changed yet.
For swing traders the bias remains cautious. The market structure still favors sellers. Short term jumps can look attractive but they carry risk when the main trend points down.
In simple terms the bounce brought relief but not confirmation. CRV moved up fast but failed to prove strength. Until buyers show consistency the safer view is that this was a short pause in a larger downtrend.
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